Have the same problem on the other computer. There appears to be a "install updates" that reinfects svchost.
Have tried several things. Noton, Malware, Mcfee, Spybot. You need to run the compete scan, if it is only finding one infected item, it is not finding it all.
As it stands now I have corrupted the windows files, I did a rebuild (restore), It was good for about two hours then was re-infected. Would not let me access anything on the net. Trying to fix that I corrupted windows a second time. I have gotten tierd of this shit, It maybe several day before I go back to it.
Please let me know what you have done.